SECTION 1. Subject to section 16 of chapter 30B of the General Laws, a City of Town may convey property by a ground lease, or any interest therein, to a private developer, urban redevelopment corporation organized under chapter 121A of the General Laws, or nonprofit corporation for the purpose of having that entity construct a mixed-use development that includes housing and a municipal facility, including a public library, police station, or fire station; provided, however, that the City or Town shall convey such property or other interest therein on the condition that the City retain, or be entitled to reacquire, the portion of the development that contains a municipal facility, whether in fee simple, as a condominium, or through any other such interest as shall provide to the public the use of the municipal facility in perpetuity until such time as the City or Town shall no longer need it for a municipal purpose and dispose of it in accordance with law. At least 40 percent of the housing units in any such mixed-use development shall have an affordable housing restriction, as defined in section 31 of chapter 184 of the General Laws, and be made affordable to low or moderate income households with a maximum income of no more than 80 percent of Area Median Income, as defined by the U.S. Department of Housing and Urban Development.

SECTION 2. Subject to section 16 of chapter 30B of the General Laws, any City or Town may acquire property, or any interest therein, for the purpose of transferring the property pursuant to section 1 for the construction by a third-party of a mixed-use development that includes a municipal facility and housing, of which at least 40 percent of the housing units would have an affordable housing restriction, as defined in section 31 of chapter 184 of the General Laws, and be made affordable to low or moderate income households with a maximum income of no more than 80 percent of Area Median Income, as defined by the U.S. Department of Housing and Urban Development.

SECTION 3. Construction and development activity related to the construction, relocation, and redevelopment of a mixed-use development that includes a municipal facility shall not be subject to any general or special law related to the procurement and award of contracts for the construction, reconstruction, installation, demolition, maintenance or repair of buildings by a public agency, except that all such work shall be subject to sections 26 to 27H, inclusive, of chapter 149 of the General Laws.

SECTION 4. This act shall take effect upon its passage.